Four wheeler car painting works

This query is : Resolved

Dhinesh (Querist)
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24 May 2012 when a car painting service provider purchases paints and uses it for painting the cars.
whether Input and output tax is to be claimed or treat paint purchase as consumables?

kindly give me suggestions experts

CA Nishikant Jaiswal

CA Nishikant Jaiswal (Expert)
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25 May 2012 please clarify whether the given service is treated as works contract.

Soumitra Basu

Soumitra Basu (Expert)
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25 May 2012 If work contract then yes.

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Dhinesh

Dhinesh (Querist)
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29 May 2012 No. this is not a works contract and one more thing, whether service tax is applicable for the four wheeler car alignment and painting ?

Soumitra Basu

Soumitra Basu (Expert)
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29 May 2012 The person who is engaged in Painting service is giving the service as Works Contract for the reason that materials and labour charges both are involved in this. In addition to this some consumable materials has to be used for this works. What I mean to say that though his work is a Work Contract still he shall be able to get input tax credit under VAT Act. Regarding Service Tax the same condition shall apply.

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